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Us 7, San Francisco 7, Soma 4, Kim 3, The City 3, John Updike 3, Avalos 2, Port 1, Ada Chan 1, Joseph Manalo 1, Applicants 1, Nofa 1, Moh 1, Gsa 1, Tracy 1, Steve Suzuki 1, Hayes 1, The Sfpuc 1, City 1, Kate Howard 1,
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  SFGTV    [untitled]  

    December 5, 2012
    1:00 - 1:30pm PST  

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little background on the south of market community stabilization fund and then describe the items that are being heard today. the fund was created in 2005 by the board of supervisors in an effort to mitigate the impact of gentrification in the south of market neighborhood when rincon hill was rezoned for residential development through ordinance 217 05. the ordinance imposed the cm, a new residential development in the new district and fees are collected are deposited into the fund to address the impacts on residents and businesses in the south of market. the board of supervisors also established a community advisory committee, cac consisting of 7 community stakeholders to advise the mayor's office of housing and the board of supervisors on the uses and expenditures of the fund. the cac established a strategic plan to guide the expenditure and administration of the funds. in 2010 the board of supervisors approved the firstv round of expenditures from the fund mostly grants to community based organizations. and as these grants came to a close, the cac revisited and we
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found the strategic plan using the learnings from the first round of the funding and taking into consideration the rapidly changing environment of the neighborhood. the chair of the cac will tell you more about this plan following my comments. the revised plan says that the firm work for the rfp issued earlier this year on july 9th, the rfp included four program areas. number one, the development on housing coordination program, two, a neighborhood and business coordination program, three, a community council, and four, community action grants coordination program. for the development in housing coordination program, it was intended to, one, coordinate with city agencies, community based organizations, and developers to provide an analysis of soma housing stock, plan development and potential displacement, and two, to facilitate and provide leadership development and education to low-income residents regarding housing and development issues.
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most staff and the cac reviewed the proposals and is recommending $100,000 to fund the agency neighborhood design proposal to provide analysis and communication and leadership development services and $60,000 to partially fund the veterans equity center proposal to provide leadership development training. both over a two-year period starting in january 2013. the neighborhood and business coordination program was intended to develop and implement a program that connects soma residents, community-based organizations and small businesses located in the neighborhood to create employment opportunities and other connections to achieve neighborhood cohesion. we did receive proposals on this program area, but the committee and staff decided not to recommend funding to any of these proposals. we do intend to re-release this rfp early in 2013. the community council program is intended to provide support and infrastructure for stabilization and community
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cohesion in soma by creating a neighborhood community council to meet regularly discuss issues affecting stabilization in the neighborhood and develop collaborative strategic strategies for addressing them. for this program we received one proposal and we are recommending to fully fund the filipino-american development foundation at $100,000 to provide this community development and to convene a neighborhood community council also over a two-year period. the community action grants coordinator program is actually the intention is actually modeled after the work that was done in your district, supervisor avalos, and the omi to coordinate with the neighborhood and to implement and administer a community-based small grants program that is focused on south of market. here the committee and the staff is recommending funding to rebuilding together at $100,000. also, over a two-year period to administer the small grants and to provide technical
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assistance. * to the grantees. in addition to the grants that i just described, we are also asking today for the authorization of the allocation of $400,000 to the mayor's office of housing for approval funding for future site acquisition in the south of market neighborhood to stabilize the existing affordable housing stock. the intent is that they will issue a notice of funding available nofa, in early 2013 that includes criteria for the types of properties, including uses to be acquired with these funds. proposals would be evaluated by the city-wide affordable housing rent committee that currently consists of the directors or the designees for the mayor's office of housing, the human services agency, and the department of public health. they will report back to this committee on the results of the nofa including the criteria that was used to evaluate proposals, the name of selected nonprofit agencies, the amount of the award, and the purpose of the expenditures.
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that concludes my comments, and i would like to now introduce ada chin, the chairperson of the cac who served on this committee since the fund's inception. >> hello, my name is ada chan. i want to talk a little bit about the two funding cycles that we've h one to date and the current funding cycle in the context of our strategic plan. in year 2008 we did a lot of funding around kind of tipping point funding. the economy had crashed and many of our community institutions were in crisis. we funded organizations that provide services to families and in that time period like many funders we saw organizations transition, we saw them merge, and we saw them change and kind of reinvent themselves. so, it's a very exciting and important moment. it wasn't as specific to outcomes we had hoped. and so we went through a planning process working with sean tell walker to do a strategic plan * specific to
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the next five years. within our strategic plan we prioritized specifically housing, assets, and community cohesion. i think one of the things that we're seeing is that when we look at the success of 333 harrison, there were 50 units, affordable units set aside at 30% of median. there were 2100 applicants for those 50 units. that means that 1% of the applicants will get into a unit. soma was able to provide 150 applicants at 30% of median. and 1%, we know that we have two applicants that made it through the lottery. so, 1% of our 150 applicants made it. happy families are all alike. every unhappy family is unhappy in its own way. >> [speaker not understood]. >> yes. and, so, the solutionses that you bring about to benefit the large or very can be large cuts, whether it's the tax benefits for the businesses and
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-- or the [speaker not understood] exemption. but when we look at the solutions for those that are vulnerable, we are finding that it is going to need to be a more surgical and specific solution. and, so, one of the proposals that's going to be coming forward is funding for looking at smaller sites. to have 1% of our applicants and a huge success and we got a lot of people, information about bmrs, but at the end of the day at most we're expecting 1 or 2 people to get into those 50 affordable units in soma. it is a benefit to the whole city to have the 50 units. we are glad we are able to negotiate it for the city, but in terms of benefit to soma residents we need more. and we need more specific outcomes that benefit soma residents. so, that's one of the proposals before you. we hope you'll support it and we know we're going to be coming forward probably next year with more solutions in that arena. thank you very much. >> thank you. supervisor kim, are there other
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[speaker not understood]? >> no, not that i know of. >> okay. supervisor avalos. >> thank you. actually, very excited about omi community grants program being a model for what happens' happening in the soma. -- what's happening in the some a. we always thought with the mayor's office of community development it could be a model for other neighborhoods to use. * and what it does is it encourages greater public engagement, greater public participation for members of the community to actually be stewards of their neighborhood. and, so, i see that as actually really building the community capital, community capacity, to look after the neighborhood. i'm actually very excited we have it here before us. and i expect to be supportive. >> thank you, supervisor. supervisor kim? >> [speaker not understood]. >> okay, thank you. okay, so, why don't we go to the budget analyst report on
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item number 15. >> good afternoon. as the department was talking about 360,000 reflects the 367,000 will be awarded to nonprofits in a competitive rfp process. the remaining 400,000 would be a quadered through a notice of funding availability in january of 2013. by moh, we do recommend that moh -- the proposed resolution be amended for moh to report back to the budget and finance committee and the results of the notice of funding availability, including specifics on the criteria used to evaluate the proposals for small site acquisition, the name of the selected nonprofit agencies, the amount of the award, and the purpose of the extended [inaudible]. otherwise we recommend approval of the proposed resolution. * on >> thank you very much. and supervisor kim, i believe
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you've got an amendment. >> yes. and, so, in light of the recommendation we do agree with that and so i am introducing -- and we did speak with the mayor's office of housing and they agree as well, to amend the and i have passed out copies to our board members. it is on page 1 on lines 24. * resolution to include a new whereas clause. whereas the mayor's office of housing will report back to budget and finance committee on the notice of funding availability for the $400,000 pool for future site acquisition in the south of market. and just to really speak very quickly on that, we often talk a lot about developing affordable housing in san francisco, but there's a lot to be said also for protecting existing stock of what is, you know, what has been affordable for our families and our residents. and, so, conversation that has come through in the soma stabilization fund and many of our communities is also how we can acquire small sites and keep them affordable as well.
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and, so, i think we will have a potential project coming before us next year which is actually quite exciting and a great way to stabilize some of the existing buildings for our residents and families. >> thank you, supervisor kim. and i believe we have not yet taken public comment on this item. so i'd like to open this item up for public comment. i do have three speaker cards here for this item. stephen suzuki, tracy parent, and joseph manalo. good afternoon, supervisors. my name is steve suzuki, i'm executive director of asian neighborhood design. as mentioned, i'm one of the potential awardees for the work. a & d is an architecture community-based planning [speaker not understood] organization in south of market. we are very excited about this prospect as we have very com petent staff that will be looking at asset mapping and assessment of the existing conditions in the south of market.
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my staff, consultant has done a lot of work [speaker not understood] in the south of market and other neighborhoods. we look at this effort as a twofold thing. we're work, with other contractors. [speaker not understood] on this. it's a community-based effort. from the bricks and mortar side it is really as we said mapping out the assets in term of affordable housing businesses. the elements that are in south of market that we really need to understand as we strategize and look at the analysis of the threats and strengths of the area. the other important part of this is as a community outreach, we're actually looking to develop leadership within the neighborhood, bringing in residents and hopefully replicating and bringing other folks that might be interested in land use because of the long-term element in communities, to have people within the neighborhood that understand it and can
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shape the future policies, it is an important part [inaudible]. so, we urge the approval of this recommendation. thank you. >> thank you. i also want to thank asian neighborhood design for working with us in our district on americans with disability [speaker not understood]. thank you. good afternoon, i'm tracy parent, the executive director of the san francisco [speaker not understood]. we have been working in partnership with the stabilization fund and a number of soma based partners the last 2-1/2 years, including asian neighborhood design, [speaker not understood] filipino-american foundation and others. and we've been sort of charged with the task of identifying some possible small sites in the south of market neighborhoods for possible acquisition. we identified the [speaker not understood] more than 30 possible small sites currently serving low-income residents in the neighborhood. and although we felt optimistic about these properties, it's very clear that with the rapidly changing real estate market and economy of south of
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market, the privately owned apartment buildings have sellers who have high expectations right now because of the very quickly changing real estate market. we're already seeing small businesses and nonprofits being moved out and their rent increased. and it is probably going to happen to the residential families in the near future. so, as i said, sellers are already expecting higher than current market value for their properties and, so, i just wanted to sort of voice today that the window of opportunity in the south of market neighborhood is quickly closing. i think the time is now. this is like the best timing to have this new allocation plan come forward to the board and to the city and i would encourage the board to support this allocation fund and to support the small size acquisition strategy. thank you. >> thank you. next speaker.
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hello, good afternoon. my name is [speaker not understood] and i am the program coordinator for the [speaker not understood] housing program of the veterans equity center. as we continue the work, we know that many multifaceted approach to civilizing the soma community. we provided direct housing case management and outreach to over a thousand community members and provide as of date 450 clients with short-term housing, case management, which our soma residents and worker of the neighborhood. the outcome has been a more engaged resident population to possible upcoming below market rate and other affordable housing opportunities. and really, the realization of the rapid change that is happening in soma, particularly the rise events in the area in the past six months. what has emerged is residents that wanted to be a part of this process in their
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neighborhood and strategies to save their long-time home, soma. the strategies proposed for this round is essential to the existence of the community and we thank you for the support for this. thank you. >> thank you very much. i don't have any other speaker cards for this item. are there other members of the public who wish to speak on this item, number 15? seeing none, public comment is closed. okay, colleagues, we have this item before us and also an amendment that was put forward by supervisor kim. can we take the amendment without objection? okay, we'll do that without objection. from my understanding to the city attorney it is not substantive, we can move forward with this item. so, colleagues, do we have a motion on the item? >> motion to move forward with recommendations. >> we have a motion to send the item as amended to the full board with recommendation. supervisor kim, did you want to say -- >> yes, i wanted to say quickly, i wanted to thank the members of the soma stabilization [speaker not understood]. we have one here, but i just think the work that they've done has been really incredible and i'm just appreciative of
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the thoughtfulness that they have gone through and the grant process and giving an overall picture and vision of how we do stabilization work in the south of market. it's an innovative area and it's a very hard issue to address, but i think that the cac has done an excellent job of really thinking this very thoughtfully and bringing some strong support to us. so, thank you. >> thank you, supervisor kim. we have a motion to send the item forward and amended to the full board with recommendation. and i think we can do that without objection. thank you very much. and then can we go to item 14? >> can we take action item 13 before we move on? >> sure. item number 13, did we hear public comment on that item? okay, we've heard public comment on it. colleagues, do we have a motion on that item? >> motion to move forward with recommendation. >> okay, we have a motion to send item 13 forward with recommendation, we can do that without objection. thank you very much to my colleagues for waiting on that one. item 14, please. >> item number 14, hearing request to better understand the city's efforts to organize and manage the usage of city property and to coordinate and acquire space for the city's
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operational needs that may include information from the department of real estate, port, san francisco municipal transportation agency, san francisco public utilities commission, and other departments. >> thank you very much. we have john updike from the department of real estate on this item. this actually was an item or hearing that i requested for real estate, as we have many different pieces of legislation that flow through the budget and finance committee. we often saw many different leases that came before us, oftentimes they came with a level of urgency and yet there was really not a context behind why we were moving forward so quickly on some of these items or why sometimes things came to us retroactively when it came to real estate. similarly, we have heard a lot about the need for space, but haven't really understood sort of the totality of the space that we have, what we occupy, and where the city sees our self-going in the future with regards to space. the city's land issues and real estate issues are actually very
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complicated. sometimes we are the landowner, sometimes we're the tenants. sometimes we are actually the landowners and parcels outside the city to help provide easements for our water system among other things. so, it is very complicated with regards to real estate. and, so, what i thought we would do in this hearing is really to start off the conversation on real estate. so, what i've asked john updike to do in this presentation because there are so many different tangents we can go on real estate, is to really provide sort of an overview about what it is that we do have in our portfolio, who generally manages it, some of the things and strategies that real estate is working on at the moment and what it is that we might be able to expect going forward. and i would imagine from this conversation it may spark additional questions from the committee. it may spark additional interest for hearings in different and specific pieces within the real estate system. so, with that i'd like to turn that over, the presentation over to john. >> thank you, chair chu and members of the committee.
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john updike, director of real estate. i believe -- no, okay. i'll take it from here, thank you, kate howard. so, thanks for the opportunity to give go over our real estate portfolio, give you some background. as the chair mentioned, this is really a lot of facts and figures to get you well grounded in the real estate portfolio and probably will lead to a series of discussions on other real estate-related matters. so, the city of san francisco real hayes one of the largest and most diverse land holdings within the city. to give you that context, there are a little over 200,000 parcels, making up 31,000 acres of land in the city, that's excluding the streets which of course the city also controls. so, of those parcels, 2000 of them are in ownership by the city of san francisco. that's almost 6,000 acres, actually it's a little more
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than 6,000 acres. that means we have ownership of 20% of the acreage within the city and county of san francisco. we also own land far beyond the city. i'll get into that in a bit. but 92,000 acres of land is owned outside of the county. so, our portfolio is not only diverse, it's vast. so, that's speaking to the land mass that we own when we talk about the buildings that we control, we have over 1,100 separate buildings over seven counties. that's totaling about 48 million square feet of improvements throughout that entire portfolio. and interestingly, 85% of that 48 million square feet is controlled by seven different departments. so, the majority -- and you see the pie chart before you -- is
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the port at 32% of those holdings. this is by square footage of improvements. the airport has 24%. gsa or administrative services, of which real estate is a part, has 11%. and on down the line. another major holder mainly as a result of the recent transfer of assets, those that are housing from the successor agency to the mayor's office of housing, they now rise to actually 4%. so, they actually have a holding that is greater than recreation and park department now. that's new data, didn't manage to get that in the pie chart, but you get a sense of that. the other category is -- that's a wide range of different departments with smaller holdings. >> so, john, i would imagine this would probably be flipped if we were talking about actual landowner ship because the puc has a lot of land, but not very many buildings, right? >> that's exactly correct. the holdings of the majority
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owner of that 92,000 acres outside of the county. some are improved, but most are not. that's exactly right. so, on to more facts and figures. just to give you a sense of what real estate touches within that portfolio, less than 10% is actually served by real estate in one way or another. so, we touch about 40 million square feet. that also has a wide range. in some cases it's the delivery of full service, everything. utilities, janitorial, security, this building is really a perfect example of that with the sole exception of security being provided through a work order basis with the sheriff's department. so, there are many different slices of that in some locations. we simply provide janitorial service. in other locations we provide engineering resources. some are obtained directly. they also provide contracting mechanisms to handle elevator services, for instance, and that's across many of the portfolio department ownerships.
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in addition, real estate provides really a brokerage capacity for the city's general fund. for those departments that don't have a real estate aspect to their staffing, they turn to real estate almost on a consultant basis. we also provide that service and particularly appraisal and title services to other departments that do have real estate services, but they don't have that aspect, those technical parts of putting a real estate deal together. so, that spoke to the ownership side. i want to briefly touch on the lease side. the city leases over 2 million square feet of privately owned space. to give you context, we earlier noted 48 million square feet of ownership, 2 million square feet leased. so, 4% of our portfolio is leased, 96% of it we own. there's a lot of small leases.
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so, while that's that number does not sound great, it's made up of everything down to a thousand square feet or less. -- some some locations. so, we have over 100 leases. * those run the gamut from office, clinic, residential, social, training sites for various purposes, and some of our industrial needs are met through leasing. i want to give you sort of a snapshot of what's ahead. interestingly, over the next 16 months or so, we're probably going to see -- you've already seen some of these items, about a half million square feet. so, nearly one quarter of our lease portfolio is going to be before the board during the coming year. now, you've seen some of that in terms of some civic center reorganization that we're doing just very recently within the last month. but you'll see additional pieces of that puzzle come forward. what we've been strategically working on over the past few years is trying to even out
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what has been a very ebb and flow of leases where we have these spikes of years with many transactions to manage and then other years with few. and given we're using staff resources, we're trying to manage that out. the reflection of that is the fact that in the next eight years, from 2014 to 20 22, we only have scheduled 350 thou square feet of lease up for renewal termination * . so, that reflects the evening of our portfolio. and that's really driven by staggering the lease terms. so, you've seen lease terms that are a little bit varied, we're not always bringing you the five-year lease with five-year option. in some cases we're strategically adjusting that. >> john, just so i know in terms of the 2 million square feet of space, about half a million of that is going to be coming up for renewal or replacement very soon. so, those leases are expiring. we are going to be expecting to see through the budget committee all of those leases come before us, right? >> they're either expiring or they're up for renewal which is
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a much more simplified process. >> right. so, those will be coming before us. you're saying every time you're bringing back a lease for renewal, you're taking a look at the terms. sometimes you're coming back with three-year terms, sometimes five-year terms, just to space out the amount of turn over we have or when leases expire so they don't all expire at one time, correct? >> that's correct. >> and just so i know, one of the things i always had a question about was we have 2 million square feet of space that we're currently -- that we currently have leased, correct? and what is our need, though? and, so, we have this amount of space. we're going to be coming back with renewals that come back. but the outstanding question is generally do we have adequate space as it is, or are we simply just trying to maintain the space or do we have to transition to an ownership? is that the position the city is in or are we seeing ourselves growing or in need of growing space which is fundamentally something i think would be good to under. >> and i'll get to that in a couple of future slides.
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really good question. i think we can dive a little deeper into that definitely. so, going forward here, just a quick snapshot of that leased portfolio, again, i mentioned over 100 leases, it runs the gamut from a nonprofit theater operation, retail space, to offices, to cafes, here in city hall, that's a liesmanaged by real estate, to telecommunications facilities. and you look at your agenda today and you see a number of items that had some underlying real estate items. in some cases real estate provided some assistance and in some cases real estate had no [speaker not understood] whatsoever. depending on the department providing a presentation and their charter authority. speaking to that, there is a host of additional leases that are managed and delivered by other departments, some of which come before the board of supervisors, some of which do not have to. as with commission or board
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approval, by those separate entities, they can enact leases. i highlighted the major players in that regard in terms of rec/park port, the mta the puc and the airport. and those are also the ones that have a fairly self-sustaining real estate arm to be able to manage their transactions. so, in that regard, we provide a brokerage service when it comes to leasing, purchasing, disposing of assets for the general fund family. we also provide a consultant role to all of these departments listed. i want to very briefly just touch on each department and indicate some of the different assistive processes that real estate provides to these groups. so, for the sfpuc, they have a very large staff to provide the